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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Analyzing Business Transactions

True/False Questions


1	When equipment is purchased for cash, there is no change in the total value of the firm's property.
		A)	True
		B)	False


2	The balance sheet is prepared at the end of the accounting period to show the results of operations
		A)	True
		B)	False


3	A net loss results if total expenses exceed total revenue
		A)	True
		B)	False


4	Profit and loss statement is another name for the income statement.
		A)	True
		B)	False


5	The balance sheet shows the financial position of a business on a specific date.
		A)	True
		B)	False


6	The net income or net loss for the period is shown in the Assets section of the balance sheet.
		A)	True
		B)	False


7	The net income or net loss for the period is shown on both the income statement and the statement of owner`s equity.
		A)	True
		B)	False


8	The collection of cash from accounts receivable increases owner`s equity.
		A)	True
		B)	False


9	Expenses decrease owner`s equity.
		A)	True
		B)	False


10	Revenue decreases owner`s equity.
		A)	True
		B)	False

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